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Donnie Gangsta · 07-03-2003, 04:20 AM

People who are really affected by this haven't really commented too heavily, and I'm really curious. BlueMedia's large thread about it had more amusement value than anything else, because of people to whom it didn't directly apply posting asinine bullshit.

Anyway, based on past precedent (strictly in my experience), a 1% CB threshold is very hard to maintain, whilst utilitizing some of the more aggressive marketing techniques that have came in vogue in the past two years. Granted, I do feel that it is possible for a site which follows a simple flat rate membership model, or even a per trial model with proper customer support can stay below this arbitrary threshold.

After looking at major sponsors/programs throughout the day -- basically, in order to borrow ideas about customer support/pricing structures/etc -- I've noticed that most use cross sales of some sort or another. The only major program that pays a reasonable amount per sign up that doesn't, so I saw after looking at a few, is ARS (At least sponsors who use Epoch). CEN has cross sales on their forms, but they're unchecked by default.. Anyway, the point is that cross sales and aggressive marketing strategies have resulted in very large profit margins, and the ability to honestly pay very high sign up rates and profit sometimes even after the first month (Prior to them being introduced/fully utilized, it would take at the very least 2-3 months to become profitable off a sale)

So, anyway, with all the rambling, all I'm really wondering is how people are planning on being under the threshold?

I'm sure people are going to respond with "I'm at .30 percent, so I'm fine", etc, etc. And, maybe you are. But for companies and individuals using the traditional membership model: A trial membership that converts to $40~, recurring monthly, what are you all planning to do? It's relatively easy to stay below 2.5%, but 1% is a completely different story. I have very little fraudulent transactions, and still have a problem with it.

Also, another question that should be addressed in a public form to get multiple opinions is this: What exactly is the point of an ISPS for those who have the minimum volume required in order for international banks to take your processing business?

We all know the point originally -- Umbrella protection and an outsource for those who can't afford their own support and such (Although, It seems KK's 'economies of scale' model from the previous post on this issue would actually come into play for independent merchants who can justify the fixed cost of hiring a support staff)

But now, with each individual responsible for maintaing their own ratios -- why does one still willingly give a very large percentage of their profits away to another company? The processing company will say that you are at great risk of losing your account on your own, telling you horror stories of people losing their fortunes, having their URLs blacklisted, etc, etc. (The only examples I can think of to whom this happened were very fraudulent/not very customer friendly: e.g. Babenet or Porncash)

So, does anyone have any real opinions on this subject?

So to sum up -- Two questions:

How are high volume sites plaining on getting below 1% (Losing cross sales, better members areas, different billing models, etc)?

What is the point of ISPSs now that each site owner is responsible for his own (very low) chargeback ratios?

07-03-2003, 04:20 AM
Donnie Gangsta Confirmed User Join Date: Mar 2002 Location: Las Vegas Posts: 1,104	This CB issue. People who are really affected by this haven't really commented too heavily, and I'm really curious. BlueMedia's large thread about it had more amusement value than anything else, because of people to whom it didn't directly apply posting asinine bullshit. Anyway, based on past precedent (strictly in my experience), a 1% CB threshold is very hard to maintain, whilst utilitizing some of the more aggressive marketing techniques that have came in vogue in the past two years. Granted, I do feel that it is possible for a site which follows a simple flat rate membership model, or even a per trial model with proper customer support can stay below this arbitrary threshold. After looking at major sponsors/programs throughout the day -- basically, in order to borrow ideas about customer support/pricing structures/etc -- I've noticed that most use cross sales of some sort or another. The only major program that pays a reasonable amount per sign up that doesn't, so I saw after looking at a few, is ARS (At least sponsors who use Epoch). CEN has cross sales on their forms, but they're unchecked by default.. Anyway, the point is that cross sales and aggressive marketing strategies have resulted in very large profit margins, and the ability to honestly pay very high sign up rates and profit sometimes even after the first month (Prior to them being introduced/fully utilized, it would take at the very least 2-3 months to become profitable off a sale) So, anyway, with all the rambling, all I'm really wondering is how people are planning on being under the threshold? I'm sure people are going to respond with "I'm at .30 percent, so I'm fine", etc, etc. And, maybe you are. But for companies and individuals using the traditional membership model: A trial membership that converts to $40~, recurring monthly, what are you all planning to do? It's relatively easy to stay below 2.5%, but 1% is a completely different story. I have very little fraudulent transactions, and still have a problem with it. Also, another question that should be addressed in a public form to get multiple opinions is this: What exactly is the point of an ISPS for those who have the minimum volume required in order for international banks to take your processing business? We all know the point originally -- Umbrella protection and an outsource for those who can't afford their own support and such (Although, It seems KK's 'economies of scale' model from the previous post on this issue would actually come into play for independent merchants who can justify the fixed cost of hiring a support staff) But now, with each individual responsible for maintaing their own ratios -- why does one still willingly give a very large percentage of their profits away to another company? The processing company will say that you are at great risk of losing your account on your own, telling you horror stories of people losing their fortunes, having their URLs blacklisted, etc, etc. (The only examples I can think of to whom this happened were very fraudulent/not very customer friendly: e.g. Babenet or Porncash) So, does anyone have any real opinions on this subject? So to sum up -- Two questions: How are high volume sites plaining on getting below 1% (Losing cross sales, better members areas, different billing models, etc)? What is the point of ISPSs now that each site owner is responsible for his own (very low) chargeback ratios?